Pagadi property disputes.

We have 7 story pagadi building in Dombivali, Maharashtra, There are around 49 tenants in building. These is the only land we have now. This building is 35year old and become dangerous to live. We have decided to redevelop this building as we are not getting any benefits from rent. The maximum rent we are getting 800 rs from tenants. We approached to builders, he said land area is very less and existing buildings is illegal so you will not get tenants FSI. Land owner can not give rooms to everyone from his share otherwise landlord will not get any single room and penny if landlord tries to give room everyone with construction cost. He suggested you will get rooms to stay and some cash only if convince to exit maximum tenants. In dombivali current pagadi rate is going between 6-8 lakhs for 1 Rk and 10-12 Lakhs for 1 Bhk. As per the pagadi rules, 50% goes to the owner if anyone resale the pagadi property. So offered, 4 Lakhs for 1 Rk and 6 Lakhs for 1 Bhk, We are giving rate as per the market price. Now tenants are arguing that they will not get any room elsewhere in this price. So they are asking for 15 laks for, 1Rk and 20 Lakhs for 1 bhk. As a land Lord we can't afford this rate. We said you are tenants and not the owners to get this rate. We are trying to give you as per the market rate. This is our land and we are struggling to get rooms for us only. Please advice how we can deal with whatever they are Demanding.